Arabica Star Co (SAU:9617) Gross Margin %: 16.91% (As of Dec. 2025) — 26% Below Median

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SAU:9617 Arabica Star Co SAU:9617
15 GF Score
Price ﷼28.44
! 3 Warning Signs
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What is Arabica Star Co Gross Margin %?

Arabica Star Co SAU:9617 15 Gross Margin % is 16.91% as of Dec. 2025, which is 26% below its 10-year median of 22.87. GuruFocus rates SAU:9617 with a GF Score™ of 15/100. The stock has 3 warning signs investors should review. Among 353 Restaurants companies, Arabica Star Co ranks worse than 88.39% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Arabica Star Co's Gross Profit for the six months ended in Dec. 2025 was ﷼4.34 Mil. Arabica Star Co's Revenue for the six months ended in Dec. 2025 was ﷼25.66 Mil. Therefore, Arabica Star Co's Gross Margin % for the quarter that ended in Dec. 2025 was 16.91%.


The historical rank and industry rank for Arabica Star Co's Gross Margin % or its related term are showing as below:

SAU:9617' s Gross Margin % Range Over the Past 10 Years
Min: 16.48   Med: 22.87   Max: 26.05
Current: 16.48


During the past 3 years, the highest Gross Margin % of Arabica Star Co was 26.05%. The lowest was 16.48%. And the median was 22.87%.

SAU:9617's Gross Margin % is ranked worse than
88.39% of 353 companies
in the Restaurants industry
Industry Median: 45.66 vs SAU:9617: 16.48

Arabica Star Co had a gross margin of 16.91% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Arabica Star Co was 0.00% per year.


Arabica Star Co  (SAU:9617) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Arabica Star Co had a gross margin of 16.91% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Arabica Star Co Gross Margin % Related Terms


Arabica Star Co Gross Margin % Historical Data

* Premium members only.

The historical data trend for Arabica Star Co's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Arabica Star Co Gross Margin % Chart

Arabica Star Co Annual Data
Trend Dec23 Dec24 Dec25
Gross Margin %
22.87 26.05 16.48

Arabica Star Co Semi-Annual Data
Dec23 Jun24 Dec24 Jun25 Dec25
Gross Margin % 0.00 23.59 28.68 16.02 16.91

SAU:9617 vs MCD, SBUX, YUM: Gross Margin % Comparison

For the Restaurants subindustry, Arabica Star Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Arabica Star Co Gross Margin % vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Arabica Star Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Arabica Star Co's Gross Margin % falls into.


SAU:9617
15GF Score
Arabica Star Co SAU:9617
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Arabica Star Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Arabica Star Co's Gross Margin for the fiscal year that ended in Dec. 2025 is calculated as

Gross Margin % (A: Dec. 2025 )=Gross Profit (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=8.2 / 50.052
=(Revenue - Cost of Goods Sold) / Revenue
=(50.052 - 41.805) / 50.052
=16.48 %

Arabica Star Co's Gross Margin for the quarter that ended in Dec. 2025 is calculated as


Gross Margin % (Q: Dec. 2025 )=Gross Profit (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=4.3 / 25.664
=(Revenue - Cost of Goods Sold) / Revenue
=(25.664 - 21.325) / 25.664
=16.91 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 16.91% mean?
Arabica Star Co (SAU:9617) has a Gross Margin % of 16.91% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Arabica Star Co and its competitors. This is 26% below median its historical median of 22.87. Over the past decade, Arabica Star Co's Gross Margin % has ranged from 16.48 to 26.05. According to the industry distribution chart, Arabica Star Co ranks #312 out of 353 companies in the Restaurants industry, placing it in the top 88.4%.
Is Arabica Star Co's Gross Margin % too high?
Arabica Star Co's current Gross Margin % of 16.91% is 26% below median its 10-year median of 22.87. Over the past 10 years, this metric has ranged from a low of 16.48 to a high of 26.05. The Restaurants industry median Gross Margin % is 45.66. Arabica Star Co's value of 16.91% is 63% below this industry median. Based on the distribution chart, Arabica Star Co ranks #312 out of 353 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Arabica Star Co has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Arabica Star Co's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Arabica Star Co ranks #312 out of 353 companies for Gross Margin %. This places Arabica Star Co in the lower half of its industry. The industry median Gross Margin % is 45.66. Arabica Star Co's value of 16.91% is 63% below this benchmark. Historically, Arabica Star Co's own Gross Margin % has ranged from 16.48 to 26.05 over the past decade. While the company's 10-year median is 22.87 vs. the industry median of 45.66, Arabica Star Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.66, based on 353 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arabica Star Co's current Gross Margin % of 16.91% is 63% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Arabica Star Co and its competitors. For the Restaurants industry, the median Gross Margin % is 45.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabica Star Co's current Gross Margin % is 16.91%, which is 26% below median its own 10-year median of 22.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabica Star Co stock overvalued right now?
Arabica Star Co (SAU:9617) has a current Gross Margin % of 16.91%. The current Gross Margin % is 16.91%, which is 26% below median its 10-year median of 22.87 and 63% below the Restaurants industry median of 45.66. Arabica Star Co's overall GF Score™ is 15/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Arabica Star Co (SAU:9617), the current Gross Margin % is 16.91% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Arabica Star Co Business Description

Address 7425 King Khalid Road, Buraydah, SAU, 52367
Arabica Star Co is engaged in operating beverage stores (coffee shops) and restaurants.
15GF Score

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